1. Munich Reinsurance America Services, Inc. Mobility Domain June 2019
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Smart Mobility LossDetect® Analysis for XXXXXX
Munich Reinsurance America Services, Inc.
Mobility Domain
June 2019

2. Smart Mobility Overview
Data & Analysis Methodology
Loss Mitigation Potential / Benefits
Recommendation & Next Steps
Appendix

3. The problem
The National Safety Council reports that there were over 40,000 traffic fatalities on U.S. roads in That is almost 5 fatalities every hour!
According to the NAIC, Commercial Auto Insurers are losing money in this market, with loss ratios approaching 70%.
The average cost of a loss related to a commercial fleet vehicle accident in was almost twice the cost of the average workplace injury.* *
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Smart Mobility
30 July 2019

4. The solution: Smart Mobility
ADVANCED FLEET MONITORING
TELEMATICS AND TRACKING
COLLISION AVOIDANCE
DRIVER COACHING
Mobile App
Analytics Platform
Driver / Fleet Scoring
Targeted Training Modules
Money Back Warranty
Vehicle Diagnostics
Driver and Vehicle Tracking
Vehicle Warnings
Detailed Analytics
Crash Avoidance
Visible and Audible Driver Warning System
Driver and Vehicle Tracking
Detailed Analytics
Telematics Based Driver Coaching
Inward/Outward Video
Capture Option
Dashboard for Fleet Oversight
Driven By LossDetect™
LossDetect™ “detects” a fleet’s loss savings potential, matches it with the right technology and risk mitigation solution(s), to achieve quantifiable savings while improving safety.
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Smart Mobility
30 July 2019

5. What sets Smart Mobility apart from others?1
Losses Reviewed
Analyzed over $4.6bn in commercial auto losses, across 10 industries and 50 insurances entities 2
SAVINGS IDENTIFIED
Over $3.2bn (approximately 70%) of the analyzed losses identified could be prevented 3
Solution Access
Deployed solutions to commercial fleets across multiple industries 4
AWARDS
Received Celent and Accenture awards for Innovation in Insurance 5
CREDIBILITY
We are backed by Munich Re, the largest reinsurer in the world and bring our objectivity and loss analysis skills to our clients
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Smart Mobility
30 July 2019

6. Smart Mobility Overview
Data & Analysis Methodology
Loss Mitigation Potential / Benefits
Recommendation & Next Steps
Appendix

7. Evaluation of commercial auto claim data
The Approach
Incurred Loss and Record Counts for key categories
(*inclusive of Zero incurreds)
Data
XXX data sets utilized
Loss Data provided from based on occurrence date
Number of records analyzed: XXX
xxxr 27% of the records contained total incurreds of zero. 62% of which are Preventable.
Total Incurred Losses range from $0 to $900k.
Analysis
Analysis focused on nominal losses
No trending, development or adjustments
Loss causes were determined based on Loss Descriptions provided
Non Preventable Losses had no clear mitigation solution
PREVENTABLE
1,131
PREVENTABLE
216
PREVENTABLE
165
Total Losses: $25.9m
About 79% deemed Preventable
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Smart Mobility
30 July 2019

8. Evaluation of commercial auto claim data
Observations
Total Frequency & Severity Overview
Rear-End
Highest incurred total, highest frequency
Left Turn
Highest avg. severity, 4th highest incurred total
Backing
Second highest frequency, low average severity
Driver Error
Second highest incurred total and high frequency
Emergency
Collisions with vehicles occurring when lights and sirens are activated
Not Auto
Includes injuries to passenger and collisions caused by intentional police maneuvers
Results presented after eliminating records with zero incurreds.
Cause of Loss
Frequency
Avg Severity
Incurred Total
REAR-END
353
$20,891
$7,374,468
DRIVER ERROR 89
$36,512
$3,249,525
INTERSECTION 73
$40,286
$2,940,844
LEFT TURN 33
$75,189
$2,481,224
UNKNOWN 93
$25,332
$2,355,846
NOT AT FAULT 61
$36,125
$2,203,634
TURNING OTHER 50
$30,775
$1,538,763
BACKING
181
$4,919
$890,303
EMERGENCY 36
$18,748
$674,915
PEDESTRIAN 10
$49,196
$491,957
LANE DEPARTURE 7
$58,782
$411,475
LANE CHANGE 30
$12,802
$384,072
MECHANICAL FAILURE 8
$42,320
$338,557
NOT AUTO 16
$15,453
$247,240
COLLIDED WITH PARKED VEHICLE 31
$3,653
$113,247
RIGHT TURN 2
$41,550
$83,099
MOTORCYCLE 1
$65,265
ROAD HAZARD 3
$18,031
$54,093
ANIMAL 9
$3,256
$29,300
SIDESWIPE
$3,019
$21,131
COLLIDED WITH OBJECT 4
$4,591
$18,362
SLID
$4,391
$17,563
WEATHER
$3,211
BICYCLIST
$356
$711
TOWING
$147
$293
Grand Total
1,106
$23,498
$25,989,100
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Smart Mobility
30 July 2019

9. Smart Mobility Overview
Data & Analysis Methodology
Loss Mitigation Potential / Benefits
Recommendation & Next Steps
Appendix

10. Mitigation tools & savings potential
Associated Payments
Claim Type
Mitigation Tool(s)
Driver Error, Right, Left & Other Turning, Intersection Collision
Driver Training
$10,293,748
Rear-end
$7,374,468
Forward Collision Warning
Total Prevention Potential
(does not account for savings potential from the Not Auto Category due to earlier warnings or smoother operation)
Preventable
Excludes those items deemed *potentially preventable
$23.1m
Unknown, Collided with Parked Vehicle, Head-on, Passing
$2,469,094
Potentially Preventable*
Backing
$890,303
Rear Backup Camera
$20.6m
Emergency
$674,916
HAAS Emergency Alert
Lane Departure and Sideswipe
$432,607
Lane Departure Warning
Lane Change
$384,072
Blind Spot Monitoring
Slid
$17,563
Traction Control
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Smart Mobility
30 July 2019 10

11. Additional direct benefits for XXXXXXX
Loss savings accrue directly to the insureds as real dollars based on retention, quickly outweighing mitigation costs.
Reduced claims and claims processing costs associated with less incidents.
Vehicles and drivers remain on the road, maximizing fleet effectiveness.
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Smart Mobility
30 July 2019

12. Indirect benefits for XXXXXXX
Operational efficiencies can be realized through better fleet oversight, reduced fuel costs through less idle time, geo-fencing, route optimization.
With Mobileye/Geotab telematics, roadside assistance is included for each outfitted vehicle.
Potential reduction in Worker Compensation claims caused by driver injury as well as economic loss (lost wages).
Enhanced ability to limit settlement payments and fraud through more accurate incident data, Not At Fault Category $2.2m.
Reduction in passenger injuries (Not Auto Category $247k) due to smoother vehicle operation and stopping – relevant for those involved in passenger or cargo transit.
Potential ability to address items that would result in Mechanical Failures ($338k) through engine diagnostic reporting.
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Smart Mobility
30 July 2019

13. Smart Mobility Overview
Data & Analysis Methodology
Loss Mitigation Potential / Benefits
Recommendation & Next Steps
Appendix

14. Loss mitigation focus areas for XXXXXXX
Loss Type
Technology-Driven Risk Mitigation
Recommendation 1
For Loss Types XXX
For Loss Types YYY
Recommendation 2
Recommendation 3
For Loss Types ZZZ
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Smart Mobility
30 July 2019

15. Value proposition for XXXXXXXX
Technology-Driven Risk Management
Driver and Fleet Scoring across your portfolio
Collect data from multiple sources in a single repository
Score each driver based on multiple data points to create a driver index
Incorporate collision and or incident history from your internal sources
Options include driver MVR checks
Index’s can compared within an account or across accounts
Provides portfolio benchmarks by industry type
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Smart Mobility
30 July 2019

16. The process ANALYZE & MATCH PILOT LEARN LAUNCH SCALE INCREASE SAFETY
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Smart Mobility
30 July 2019

17. Increase operational efficiencies
The value
Preferred
pricing
Reduce losses
Increase operational efficiencies
Increase safety
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Smart Mobility
30 July 2019

18. Next steps for XXXXXXXXX1
Results Review
Review results of LossDetect® full analysis 2
Secondary Analysis by Insured
Augment provided data with vehicle types and existing safety options deployed, additional description for unknowns if available.
Perform a second analysis at the member and vehicle type level and recommend solutions for select members based on a year by year profile (fee involved). 3
Provide Access to Munich Re Preferred Pricing for solutions
Munich Re has pre-negotiated lower prices with many vendor partners based on our volume capacities. We make these discounts available to our clients.
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Smart Mobility
30 July 2019

19. Smart Mobility Overview
Data & Analysis Methodology
Loss Mitigation Potential / Benefits
Recommendation & Next Steps
Appendix

20. Commercial auto market – telematics usage
13 million commercial vehicles in use
Only 30% have devices installed
Source:
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Smart Mobility
30 July 2019

21. Current impact – ADAS efficacy from various sources
Testing Method Assessment
Test Parameter Assessment
ADAS Technology
Collision Type
Source
Reduction Estimate
Estimate Method
Weather
Geography
Speed
Sample Size
OEM Diversity
Publication Date
Forward Collision Warning
Rear
IIHS
27%
DOT
23%
All
NCBI
67%
AAA
10%
Automatic Emergency Braking
50%
43%
40%
17%
EU NCAP
38%
Adaptive Cruise Control
Academic
Estimate Method:
Collision Data
Simulation
Survey/Other
Other:
Inclusive/Favorable
Limited/Unfavorable
Note(s): Missing assessment indicates no information was provided. Assumes collision data assessment of random sample incorporates weather, geography and OEMs, select sources/studies shown for AEB.
Source KPMG LLP 2018
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Smart Mobility
30 July 2019

22. Current impact – ADAS efficacy from various sources
Testing Method Assessment
Test Parameter Assessment
ADAS Technology
Collision Type
Source
Reduction Estimate
Estimate Method
Weather
Geography
Speed
Sample Size
OEM Diversity
Publication Date
Rear Camera
Rear
IIHS
17%
AAA
30%
Lane Detection Warning System
All
11%
NCBI
23%
EUROPA
33% 3%
Blind Spot Detection
Side
14%
Cross Traffic Alert
13%
Consumer Reports
31%
SAE
39% 2%
Estimate Method:
Collision Data
Simulation
Survey/Other
Other:
Inclusive/Favorable
Limited/Unfavorable
Note(s): Missing assessment indicates no information was provided. Assumes collision data assessment of random sample incorporates weather, geography and OEMs.
Source KPMG LLP 2018
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Smart Mobility
30 July 2019

23. Independent research The Insurance Research Council
56% of 1,135 drivers surveyed said they have made changes in how they drive since installing a telematics device¹
Assuming a 100% effectiveness rate for each of the following 3 technologies, (Blind Spot Monitoring, Lane Departure Warning, Forward Crash Warning) study indicated that 1.3 million crashes, 133,000 injury crashes and 10,100 fatal crashes could have been avoided²
Same study indicated that FCW alone could prevent or reduce the severity of close to 800,000 crashes of 14% of all crashes²
National Safety Council
For the first time in nearly a decade, preliminary 2016 data from the National Safety Council estimates that as many as 40,000 people died in motor vehicle crashes last year. That marks a 6% increase over 2015, and a 14% increase over 2014 – the most dramatic two-year escalation since 1964–53 years.
Virginia Tech Transportation Institute
93% of the accidents investigated in the study were due to human error, with driver inattention being the primary cause
Nearly 80% of crashes and 65% of near-crashes involved some form of driver inattention within three seconds before the event
40% of rear­-end collisions have no brake application whatsoever
60% of road accident fatalities are due to unintentional lane departure
1 Telematics Changing Drivers' Behavior: Insurance Research, Insurance Journal 11/18/2015,
2 Cost and Benefit Estimates of Partially-Automated Vehicle collision Avoidance Technology, Accident Analysis and Prevention, Volume 95, Part A, October 2016, pages , Corey D Harper, Chris T. Hendrickson, Constantine Samaras
Smart Mobility
30 July 2019

24. Image: Emanuel M Schwermer / Getty Images
Disclaimer
This material was prepared based on XXXXXX data for informational use only, and is not permitted to be further distributed without the express written permission of Munich Reinsurance America, Incorporated. No representation or warranty of any kind, whether express or implied, is provided with respect to the accuracy, completeness, or applicability of this material to any recipient’s circumstances. This material is not intended to be legal, underwriting, financial or any other type of professional advice. Munich Reinsurance America, Inc. and its affiliates disclaim any and all liability whatsoever resulting from use of or reliance upon this material.

25. Learn more at munichreus.ly/smartmobility
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Learn more at munichreus.ly/smartmobility
Bruce Weisgerber
Smart Mobility Leader
Phone:
© Copyright 2019 Munich Reinsurance America, Inc. All rights reserved. Product and services provided by Munich Reinsurance America, Inc. (Munich Re) and its affiliates. This material is for informational purposes only and is not intended to be legal, underwriting, financial or any other type of professional advice, and the recipient should consult with its own counsel or other advisors to verify the accuracy and completeness of any information used and to determine its applicability to the recipient’s particular circumstances.